Equatorial Guinea. challenges of oil-driven economy

Publication type Article
Status Published
Occupation: vladilen.gusarov@yandex.ru
Affiliation: Institute for African Studies, Russian Academy of Sciences
Address: Russian Federation, Moscow
Occupation: Senior Research Fellow, Centre for Transition Economy Studies, Institute for African Studies RAS
Affiliation: Institute for African Studies RAS
Address: Russian Federation, Moscow
Journal nameAsia and Africa Today
EditionIssue 5

The article considers the achievements and challenges of Equatorial Guinea’s economic development, which became in the middle of 2000s one of Africa’s fastest-growing economies and third-largest oil producer and exporter in Sub-Saharan Africa.

The country started to implement the National economic development plan Horizon 2020 aimed mainly at infrastructure creation and social problems solving. There were some positive results such as the construction of several motorways, runways, reconstruction of ports in Malabo, Luba and Bata, creation of telecommunication system, building of some hospitals, schools and international conference centre.

Despite of one of the highest indicators of income per capita among African countries at that period, most part of population was  still  living  in  poverty.  Besides,  according  to  Transparency  International  organization’s  estimate  corruption  was  one  of  the greatest problems for the country. Unfortunately, macroeconomic and fiscal situation deteriorated due to the energy market crisis breaking out in 2008 and 2014, which was accompanied by depletion of oil reserves and low level of other sectors development.

As economic recession has already continued for 6 years, the government has developed interim strategy for the period 2020-

2022  which  envisages  on  the  one  hand  economic  diversification  and  on  the  other,  attraction  of  international  investment  for researching new hydrocarbon resources. Attention is also paid to the natural gas processing and export.

Equatorial Guinea is interested in cooperation with Russian companies in energy sphere, which was discussed at the highest level at the Russia - Africa summit in October 2019. As a result, such corporations as Lukoil and Rosgeologiya have concluded contracts for hydrocarbon research.

KeywordsEquatorial Guinea, oil, natural gas, oil-driven economy, electric power sector
Publication date23.06.2020
Number of characters21592
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